Tax Filing for Freelancers and Consultants in Bhiwadi need to manage their taxes efficiently to avoid penalties and maximize savings. Unlike salaried employees, they do not have Tax Deducted at Source (TDS) handled by employers, making tax filing a crucial aspect of their financial planning.
In this guide, we’ll cover the essentials of tax filing for freelancers and consultants in Bhiwadi and how GTS Consultant can help you stay tax-compliant.
Understanding Taxation for Freelancers and Consultants in Bhiwadi
As a freelancer or consultant, your income falls under the category of “Income from Business or Profession” as per the Income Tax Act, 1961. This means you are responsible for calculating, reporting, and paying your taxes.
1. Determine Your Taxable Income
Your taxable income is calculated as:
Total Revenue – Business Expenses = Taxable Income
Common deductible expenses include:
- Internet and phone bills
- Office rent and coworking space costs
- Professional software subscriptions
- Travel and client meeting expenses
- Marketing and advertising costs
2. Understanding GST for Freelancers in Bhiwadi
Freelancers earning more than ₹20 lakh per year (₹10 lakh for certain northeastern states) must register for Goods and Services Tax (GST) and file regular returns.
- GST Registration: Required if your income crosses the threshold.
- GST Returns: Monthly or quarterly filing is mandatory.
- Input Tax Credit: You can claim GST paid on business expenses.
Steps to File Income Tax for Freelancers in Bhiwadi
Step 1: Maintain Proper Financial Records
Keep a record of all invoices, bank transactions, expenses, and tax payments. Using accounting software or hiring a professional can make this process easier.
Step 2: Calculate Advance Tax
If your annual tax liability exceeds ₹10,000, you must pay advance tax quarterly to avoid penalties:
- 15% by June 15
- 45% by September 15
- 75% by December 15
- 100% by March 15
Step 3: Choose the Right Tax Regime
Freelancers and consultants can choose between:
- Old Tax Regime – Allows deductions under Section 80C, 80D, 80E, etc.
- New Tax Regime – Lower tax rates but no deductions.
Step 4: File ITR Under the Correct Form
For freelancers, the applicable ITR forms are:
- ITR-3 (for professionals with books of accounts)
- ITR-4 (for presumptive taxation under Section 44ADA)
Step 5: Claim Deductions to Reduce Taxable Income
Freelancers and consultants can claim:
- Section 80C – Investments in PPF, LIC, ELSS
- Section 80D – Health insurance premium
- Section 80G – Donations to charities
- Section 80E – Education loan interest
How GTS Consultant Can Help You
Filing taxes as a freelancer can be complex, but GTS Consultant simplifies the process with expert guidance. We offer:
- Freelancer & Consultant Tax Filing Services
- GST Registration & Returns Filing
- Tax Planning & Deduction Optimization
- Advance Tax Calculation & Payment Assistance
- Audit & Compliance Support
At GTS Consultant, we ensure that freelancers and consultants in Bhiwadi meet all taxation requirements without hassle.
Conclusion
Proper tax filing helps freelancers and consultants in Bhiwadi avoid penalties and maximize savings. By understanding GST, choosing the right tax regime, and claiming deductions, you can reduce your tax burden.
For professional tax filing assistance, consult GTS Consultant today!
